Know Thine Enemy
According to my Merrill F.C., Clifford Henry has managed the Worthington Growth Fund since 1990. Even so, it had only $30MM in assets at the beginning of 1999. With its 60% return YTD, it is now about $50MM in assets. That is miniscule. If Mr. Henry were so smart, you would think he would be way beyond this by now.
Beyond that, I've often thought that fund managers who pimp stocks in Barron's don't go public until they already have their positions and, sometimes, are ready to sell. Conversely, those with short positions may hope for a downwards Barron's effect so as to enable them to cover.
With NITE's forward p.e. of about 20, I really think that Henry does a disservice (well, maybe not to his own fund and his own need to cover), by suggesting the stock be shorted down to 20 (for a p.e. of 12). This just defies logic. (Incidentally, how about AMTD, with its trailing p.e. of 150. Isn't that somewhat of a better target?)
Gary Korn |
